By February 19, 2009Economy, Taxation
  • San Francisco Chronicle: “We will not let the state go off a cliff,” thundered Gov. Arnold Schwarzenegger in a news conference about California’s vaporized budget early Wednesday..
  • Sacramento Bee, quoting state Sen. Abel Maldonado: “Do I want to make my home state solvent? Do I want to protect education? Do I want to keep it from going off the cliff?”
  • Los Angeles Times, quoting Senate Republican leader Dave Cogdill of Modesto: The budget deal would “keep the state from plummeting off the financial cliff,” he said.
  • Forbes: “We’re here today, literally on the edge of a cliff,” said one Democratic strategist in California. “The pain from this is going to be immediate.”

From the WSJ, “California Senate, Assembly Send Budget to Schwarzenegger“:

The budget calls for California to generate up to $13 billion in revenue by raising sales taxes one percentage point and adding a surcharge on state income taxes, among other steps. One feature represents a remarkable capitulation for Mr. Schwarzenegger: an increase in the vehicle-license fee from 0.65% to 1.15%. The governor won his post in 2003 after campaigning to cut back the so-called car tax, which he did soon after taking office.

The proposal calls for the state to slash $15 billion in spending, including $8.6 billion from education. To save $1.4 billion from payroll costs, the government will eliminate two state holidays, change overtime rules and furlough workers at least one day a month. The remaining deficit was to be closed mostly through borrowing or with money from a federal-stimulus package.

Video commentary from YouTube.

UPDATE (10:15 a.m.): Here’s a list of California state holidays in 2009. Which two will be eliminated? We can guess: Arrivederci, Christopher. And, President Lincoln, meet President Washington.

Thursday, January 1, 2009 New Years Day
Monday, January 19, 2009 Martin Luther King Jr. Day
Thursday, February 12, 2009 Lincoln’s Birthday
Monday, February 16, 2009 Washington’s Birthday
Tuesday, March 31, 2009 Cesar Chavez Day
Monday, May 25, 2009 Memorial Day
Monday, September 7, 2009 Labor Day
Monday, October 12, 2009 Columbus Day
Wednesday, November 11, 2009 Veterans Day
Thursday, November 26, 2009 Thanksgiving Day
Friday, November 27, 2009 Day after Thanksgiving
Friday, December 25, 2009 Christmas Day

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